Ethereum continues the record-breaking rally while picking up the bids near $1,940 as of today.
This ability to extend the bounce-off 10-day SMA gains support from the large number of crypto whales that favor the bulls inside the bearish chart pattern formation. Also important is the absence of a bearish MACD.
But overbought RSI and a rather strong resistance line that is being kept since 2021 started have the ability to trigger a pullback before the $2,000 level is reached.
In case the pullback moves go over the 10-day SMA level of $1,830, it means that the pattern’s support close to the $1,770 level will be the most important to keep an eye on since a downside break will validate the extended pullback toward a monthly low of around $1,490.
All in all, the ETH/USD pair remains on a bullish trajectory and is getting closer to challenge the $2,000 psychological magnet. Also worth mentioning is the fact that the key resistance and overbought RSI could offer a spot for the whales to rest for a while.
Source: fxstreet.com